State of the economy highlights growth, Rays

Pinellas County continues attracting new residents, and the overwhelming majority are choosing to live in St. Petersburg.

The tagline for Thursday evening’s 2024 State of the Economy event was “inclusive progress – one data point at a time.” A procession of city officials presented a wealth of information, primarily highlighting St. Petersburg’s progress, to a packed crowd at the ARK Innovation Center.

One particularly lopsided bar graph compared municipal population increases throughout the county. Brian Caper, economic and workforce development director, noted that St. Petersburg gained 7,500 residents in the past three years, or 48% of all new residents.

Largo was a distant second at 12%. “This demonstrates that St. Petersburg continues to be one of the primary economic drivers for not only the county but the region as well,” Caper said.

A graphic highlighting St. Petersburg’s growth compared to other cities. Screengrab.

Mayor Ken Welch began the data-filled event by stating that the city has recently established a unique brand and cultural identity. He also expressed his administration’s focus on fostering positive community impacts.

“It’s gratifying to see the rest of the nation recognizing the vibe and vitality that defines us, and we definitely have the awards and accolades to prove it,” Welch said. “We’ve seen not only a growth in our population (265,782) but also robust and inclusive economic growth.”

However, the third slide highlighted workforce disparities. Most jobs exist downtown or on the city’s northern boundary in the Gateway area. Employment opportunities drop precipitously in South St. Pete.

Help is on the way. Recently established programs in the South St. Petersburg Community Redevelopment Area (CRA) provide small business grants, entrepreneurial mentorship and equity in city contracts and procurement processes.

Overall, job growth exceeds pre-pandemic and county, region and state levels. St. Petersburg’s unemployment rate is at 2.7%, below the region and state’s 2.9% average.

Raymond James, Johns Hopkins All Children’s Hospital, Publix and Jabil are the city’s top private-sector employers. Caper noted that the Tampa Bay Rays ranked 10^th with over 4,000 employees during baseball season.

Caper said the Historic Gas Plant District’s redevelopment – led by the team and Hines – “will not only generate tens of thousands of construction, trade and permanent jobs but also retain existing jobs that are currently created by the Tampa Bay Rays.”

A graphic showing taxable values in the South St. Petersburg CRA reaching $2 billion. Screengrab.

The $6.5 billion project was mentioned early and often at the event. In addition to jobs, officials noted it would provide much-needed office space.

Caper said there is essentially no office space downtown. He explained that those market-rate rents are $31.65 per square foot, and developers must typically charge $70 per square foot to invest in new buildings.

“This indicates that not only do we have a way to go for the market to generate new offices, but it really highlights the importance of public-private partnerships,” Caper added. “Especially in downtown, like the Orange Station project and the Historic Gas Plant redevelopment.”

Cathie Wood, founder and CEO of ARK Invest, endorsed the Rays’ plan to transform Tropicana Field and its surrounding parking lots into a vibrant mixed-use community. She also has a plan to help fill a new ballpark during the offseason.

“So, in other words, you can count ARK in,” Wood said.

She also announced plans to launch an early-stage venture capital fund. Wood is now looking for seed money to launch the investment vehicle and said it would introduce and attract new tech startups to St. Petersburg.

Wood said it would help expand the recently opened Innovation Center. She also stressed the importance of creating a local talent pipeline, starting with children.

A partnership with Pinellas County Schools already provides middle school students with a technologically focused curriculum. “But our vision there is from toddlers through high school,” Wood said.

Rays’ president Matt Silverman said a reimagined Gas Plant would encompass eight million square feet of redeveloped space. He added that the two-decade project would allow workers and businesses to gain experience and build the capacity to flourish indefinitely.

In addition to the ballpark, which will open in 2028 during the first phase, Silverman said a new performance venue will hold about 5,000 people. He said shops and restaurants embodying the city’s character would combine with apartments, hotels, office buildings, healthcare facilities and parks to create a “walkable 20-minute neighborhood.”

“When complete, 70 acres of asphalt will be converted into a thriving neighborhood – and one that actually generates property taxes,” Silverman said. “This transformational project will not be easy; it will not be without its hiccups. But the end result will be powerful, and it will be a great source of pride.”

St. Petersburg’s taxable value in 2023 was $31 billion. Screengrab.

To view the presentation, visit the website here.